Assess whether management can run this without the founder after IT diligence

SITUATION Buy-side QoE lead in a PE platform evaluating a founder-led SaaS add-on has one working extract — carve-out stranded-cost model — after IT diligence showing two ERPs and no chart of accounts map. If carve-out stranded-cost model cannot support management can run this, the only defensible M&A Due Diligence output is hold.

DECISION Buy-side QoE lead in a PE platform evaluating a founder-led SaaS add-on must choose Proceed / Reprice / Walk / Hold using carve-out stranded-cost model after IT diligence showing two ERPs and no chart of accounts map.

HYPOTHESES TO TEST 1. Authorize Proceed now; carve-out stranded-cost model already has the discriminator after IT diligence showing two ERPs and no chart of accounts map. 2. Keep Reprice in force until carve-out stranded-cost model is completed after IT diligence showing two ERPs and no chart of accounts map for buy-side QoE lead. 3. Treat carve-out stranded-cost model as Walk because both readings appear after IT diligence showing two ERPs and no chart of accounts map. 4. Refuse a M&A Due Diligence close: buy-side QoE lead does not have the decision management can run this turns on in carve-out stranded-cost model.

ANALYSIS REQUIRED 1. Separate a one-off add-back from a recurring earnings issue in carve-out stranded-cost model. 2. Map reps, earnout mechanics, and integration risk a PE platform evaluating a founder-led SaaS add-on would inherit. 3. Tie quality-of-earnings, working-capital, and contingent items in carve-out stranded-cost model to management can run this. 4. For this M&A Due Diligence Earnings and Revenue Quality file, read carve-out stranded-cost model against IT diligence showing two ERPs and no chart of accounts map and write the one fact that would move management can run this for buy-side QoE lead.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Earnings and Revenue Quality packet (carve-out stranded-cost model after IT diligence showing two ERPs and no chart of accounts map). The follow-on Earnings and Revenue Quality action is what buy-side QoE lead does next: implement the option, assign an owner, and log the missing fact.

COMMAND RETURNS - Bottom-line M&A Due Diligence option on management can run this, then the evidence in carve-out stranded-cost model, then the action for buy-side QoE lead - Hypothesis scorecard against carve-out stranded-cost model: supported / rejected / untestable - Regulatory or exam hook Earnings and Revenue Quality would cite - Earnings and Revenue Quality finding in carve-out stranded-cost model that a second reviewer can re-perform